Open for Business!

STUDENT'S VERSION

INTRODUCTION

What do you want to be when you grow up? Some of your friends may want to be a doctor, a banker, a teacher, or a pilot? Others may want to be their own boss and start a business which they think will be a great success!

This lesson will teach you about being an entrepreneur, a business owner, and looking at both the risks and rewards of starting your own business. Also, you will identify businesses that produce goods and businesses that provide services.

Are you ready? This lesson is "Open for Business!"

TASK

If someone asked you what an entrepreneur does, what would you say? This lesson is designed to teach you characteristics of an entrepreneur and will challenge you to think about economics of business.

PROCESS

Have you ever wanted something...really, really wanted it? If the thing you wanted was not something you could have immediately, you may have had to set a goal on how to get what you wanted. Has that ever happened to you?

Today you are going to read a story about a book character you know well. His name is Arthur. He will set a goal, and he will also help us discover some of the risks and rewards of starting a business.

What did Arthur's parents say would have to occur before he could get a puppy?

What did DW say was the best way to show he was responsible?

What were the first two job options suggested to Arthur?

What did Francine suggest?

The story tells us that Arthur then had an idea. What was his idea?Arthur became an entrepreneur. Do you know what that means? An entrepreneur is a person who organizes and operates a business or businesses, while taking some risks along the way. Entrepreneurs recognize opportunities, like being their own boss, and accepting challenges.
What do you think might be some risks an entrepreneur might take in starting a business? What do you think might be some rewards an entrepreneur might enjoy in starting a business?

Entrepreneurs produce goods and provide services to satisfy consumers' wants. Remember that a consumer is a shopper, a person whose wants are satisfied by using goods and services. Goods are things that people enjoy and use that can be touched, held, or used. Goods might include food, toys, books, clothes, electronics, bikes, and cars. Can you think of other goods? Services are actions that satisfy people's wants. Services might include mowing someone's lawn, washing someone's clothes, cutting someone's hair, or babysitting. What is another example of a service?

Entrepreneurship

Arthur was going to start a pet business. Would he be producing a good or providing a service? How did you know?

Was the pet business a good risk for Arthur to take as he became an entrepreneur?

What service did Arthur provide for Perky?

What new pet did Arthur provide a service for on Thursday?

At the end of the story, did Arthur achieve his goal? Was his business successful?

Inputs and Outputs

When an entrepreneur has decided on a business to start, like Arthur, what do you think might need to be done next?

What did Arthur do so consumers would know about his pet business?

Incentives
(to running a business is customers and a good reputation)

What happened that increased Arthur's business?

Who was the first consumer to contact Arthur? What was her request?

On Monday, why did the MacMillans contacted Arthur?

On Tuesday, which consumer contacted Arthur?

Who was the next consumer interested in Arthur's business?

Costs and Benefits

Arthur realized one of the costs of running his own business when his friend Buster invited him to go to the movie on Saturday. What happened? An entrepreneur often has to work many long hours and often misses some fun things. Do you think the benefits outweigh the costs of being an entrepreneur?

CONCLUSION

What economic concepts have you learned about today?

What was Arthur's goal in the story?

What was his best idea on how to reach his goal?

If someone asked you what an entrepreneur does, what would you say?

Name one risk of being an entrepreneur.

Name one reward an entrepreneur might enjoy by starting a business.

Think of Arthur's Pet Business. Did Arthur produce a good or provide a service in his business? How do you know?

Now, click on the Activity to review businesses that produce goods and provide services.

ASSESSMENT ACTIVITY

Assessment Option 1: Your teacher will give you a sheet called "Picturing Economics." Your task is to draw or find a picture that explains all the concepts you have learned about today.

Assessment Option 2: Show What You Know!
Click on the link and "show what you know" by answering questions about what you have learned today.

EXTENSION ACTIVITY

MORE GREAT LESSONS
*Below are four great lessons that are a great follow up to the lesson you just participated in: